BuzzFeed has reportedly obtained Zenefits’s financial documents and things aren’t so rosy. According to the report, the insurance/HR software startup saw a loss of $204.5 million in the last fiscal year, and another $100 million in the first six months of this fiscal year. During the first half of this year the company’s reported revenue was $35.3 million.
Zenefits has been at the heart of an almost yearlong scandal involving (among other things) employees systematically skirting insurance laws and regulations, which resulted in its founder stepping down. The company’s turnaround hinges on dramatically increasing revenue, which is the one silver lining in the leaked docs: “Zenefits’s revenue is increasing more quickly than its costs,” BuzzFeed’s William Alden reports, with an increase in 62% compared to the previous year and costs only increasing 12%.
In response to the report, a Zenefits spokesperson told BuzzFeed, “We are proud of what we have accomplished this year.” Read the company’s full reply here.
Recently, Zenefits CEO David Sacks sat down with Fast Company and talked about how he approached the turnaround. “I know that turnarounds in tech are very hard—and they almost never work,” he told us. You can read the entire interview here.